Microsoft a buy?

Enthusiasm about it’s upcoming Windows 7 operating program and rather aggressive cost cutting to maintain EPS despite declining sales has given a boost to the stockprice. Will it last?

The most salient details of the MSFT earnings, as well as some analyst commentary were quite upbeat, but we remain unconvinced. The PC landscape is fundamentally changing.

We’ll give you the most important threats:

Ubuntu 9.04 (basically a version of Linux) even being on a par as the much improved Windows 7, that could be a serious problem for Microsoft, especially if you combine it with the earlier developments pressing PC manufacturers towards much cheaper laptops..

Having said that, Microsoft shares at about 10 times this year’s free cash-flow are certainly not expensive..